Taxes have proven to be effective economic instrument for dealing with environmental problems. Theidea is actually how ecological taxes can lead to «double dividend»in a way that improves the environment and reduces the tax burden of other taxes. This tax reform can be implemented in Croatia with positive environmental results and employment and competitiveness of the Croatian labor market, it is also important to point out then ovelty of Croatia's entry into the European Unionas far as the policy of ecological taxes is concerned, as well as changes in taxation and amount, and how much are the effects on the environment and the reduction of pollution.